Examining The Difference Between Secured And Unsecured Debt
When you file for bankruptcy, you are able to discharge most of your unsecured debt. This is debt that is not backed by collateral. To find out which type of debts you can and cannot get rid of in the bankruptcy process, consult with an experienced attorney such as a member of our team at the Riddell Law Group.
Our lawyers have helped countless residents of Sarasota County, Florida and the surrounding counties, through the bankruptcy process and helped them find alternative ways to manage debts that cannot be discharged.
Which Types Of Debt Can You Discharge In Your Bankruptcy Filing?
The most common types of debts that you can wipe away through the bankruptcy process include:
- Credit card bills
- Medical bills
- Unsecured loans, which are usually for smaller amounts and not backed by collateral
- Payday loans
This means that many other types of debt — student loans (except in rare circumstances), child support, alimony and most tax debts — cannot be discharged in the bankruptcy process. Mortgage loans and auto loans are secured debts that are backed by collateral (the home and the vehicle, respectively), so if you wish to get out from under your mortgage or auto loan, for example, you will have to surrender the property and give it back to the secured creditor.
Work With Lawyers Who Understand Bankruptcy Law
At the Riddell Law Group, we will put our deep knowledge of the bankruptcy process and other debt relief instruments to use to help you reach a solution that meets your unique needs. Please contact our law firm in Sarasota at 941-366-1300 to schedule a consultation. We also have office locations in Venice and Lakewood Ranch, Florida.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.